PGR.L Regulatory News (PGR)

10 May 2021

Phoenix Global Resources plc

("Phoenix" or the "Company")

Additional Funding

Phoenix Global Resources plc (AIM: PGR; BCBA: PGR), the upstream oil and gas company, announces an update on funding arrangements.

At 30 June 2020, a facility of US$ 291 million ("Revolving Convertible Facility") was available to the Company from Mercuria Energy Netherlands BV ("Mercuria"), part of the Mercuria Group, with a total of US$ 281 million drawn down under this convertible facility. The undrawn balance of US$ 10 million was made available through a non-convertible bridging facility (the "Bridging Facility"), whilst the parties discussed the restructure of the Revolving Convertible Facility. The Revolving Convertible Facility currently provides for a grace period for repayments (interest and principal) from 1 January 2019 to 30 June 2021 with a maturity date of 31 December 2021 and carries interest at US$ LIBOR plus 4%. The Bridging Facility has subsequently been increased in tranches to US$31 million; it carries interest at US$ LIBOR plus 4% and is not convertible.

As disclosed in the 2020 interim results, Mercuria stated its intention to provide financial support to the Company in order that the Company could continue to operate and service the Company's liabilities as they fall due for the 12-month period from 9 October 2020, the date of the release of the interim results, and agreed to meet the Company's cash needs for this period and not demand repayment of the loans (principal and interest), whilst discussions between the parties to restructure the loans continued.

The Board continues to believe that it will be able to agree the restructure of the existing debt with Mercuria and formalise an agreement for new funding. Whilst these discussions continue, Mercuria has agreed to increase the Bridging Facility to US$41 million, with the principal terms consistent with the terms of the existing facility with a grace period for principal and interest to 30 June 2021 and a repayment date of 30 June 2021. The loans will continue to be unsecured.

The funds will be used to support the working capital requirements of the group and in particular the group's unconventional capex programs in Mata Mora and Corralera.

Related Party Transaction

Mercuria Group is a substantial shareholder of the Company and a related party under the AIM Rules. The increase of the Bridging Facility to US$41 million, if aggregated with other transactions carried out between the Company and Mercuria Group, constitutes a related party transaction (the "Transaction") under the AIM Rules. The directors of the Company, except for Daniel Jaeggi (being Mercuria's designated director under the Relationship Agreement between Phoenix and certain Mercuria Group companies), having consulted with the Company's nominated adviser, Shore Capital & Corporate Limited, consider that the terms of the Transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Ends

For further information, please contact:

About Phoenix

Phoenix Global Resources is an independent oil and gas exploration and production company focused on Argentina and listed on both the London Stock Exchange (AIM: PGR) and the Buenos Aires Stock Exchange (BCBA: PGR) and offers its investors an opportunity to invest directly into Argentina's Vaca Muerta shale formation and other unconventional resources. The Company has over 0.9 million licenced working interest acres in Argentina (of which approximately 0.7 million are operated), 29.8 million boe of working interest 2P reserves and average working interest production of 9,236 boepd in 2019. Phoenix has significant exposure to the unconventional opportunity in Argentina through its approximately 0.6 million working interest acres with Vaca Muerta and other unconventional potential.

The Company's website is www.phoenixglobalresources.com